Our IRS Tax Fraud Defense Lawyers Achieving Results in FEDERAL TAX FRAUD CASES
The IRS investigates all types of tax errors including both innocent mistakes and tax returns that are intentionally fraudulent. There is a range of tax-related offenses that the IRS looks at including everything from failure to file taxes to falsifying or omitting information.
Tax evasion is the deliberate underpayment of taxes, including failure to pay altogether. Tax evasion might include transferring or hiding assets for the purpose of having a lower tax liability. In a way, tax evasion can be viewed as a subcategory of a broader category of tax-related crimes known as tax fraud.
Tax fraud occurs when a taxpayer fails to provide accurate and complete information to the IRS with a deceptive intent to minimize their tax liability. Tax fraud may include falsifying or underreporting income or overstating deductions.
When the IRS conducts an investigation or audit, it isn’t necessarily looking to throw someone in prison for the offense. The IRS understands that honest mistakes do happen and that, in some cases, a lack of financial resources to pay a tax debt are often what’s behind the discrepancies they uncover.
When falsifying a tax return creates a situation where the taxpayer owes a relatively small amount of money to the IRS, they will typically be given the opportunity to rectify the situation and be required to pay additional fines.
Simply failing to file a return can result in one year of jail time for each tax year that a return wasn’t filed. However, the IRS is more likely to work with you to put together a payment plan to settle your tax debt in this situation.
If filing a false tax returns leads to charges of tax evasion, the penalties are more severe than simply failing to file. Intentional tax evasion carries a penalty of up to five years in prison. If you have become involved in helping another individual evade taxes, such as knowingly and intentionally helping them hide assets, you can also find yourself facing a possible prison term of 3 to 5 years.
- A Dallas jury returned a NOT GUILTY verdict in a tax fraud case in which a client was charged with two of his brothers of filing 27 false corporate tax returns.